this is "nightly business report" with sue herera and bill griffeth.ta >>ff tantrum. the white house slaps tariffs on chinese goods. china retaliates and investors are left wondering what comes next. open house. homes are selling in record time. even if prices rise, making for a very competitive weekend for house hunters. food fight. one year ago amazon rattled the grocery industry with the acquisition of whole foods. but has the sector changed all th much as expected? those stories and more tonight on "nightly business report" fo this friday, je 15th. >> happy friday and good evening, everyone. welcome. china is striking back. that country announcing retaliatory tariffs on american products. this after white house made

good on its threat to impose tariff on chineseimports chrks we reported was likely to happen. the announcements follow a week of tense talks between the world's two largest economies, and it raises the potential for a trade war. kayla tausc has the details tonight from >> at an impromptu exchange with reporters on the white house wnnorth , president trump had praise forna chi cooperation on north korea, but condemnation for its trade practices. >> we're putting tariffs on $50 thllion worth of technology and other gs, because we have to. because we've been treated very unfairly, cutna has been terrific. president xi has been terrific. president moon, everybody, we're all working together. >> tariffs on se 800 chinese products worth an estimated $34 billion wake effect in three weeks. an additional $16 billion could be put p ince after july 31st. the goal is to pressure china to make structural reforms that protect u.s companies'

intellectual property. china warned the u.s. w provoking a trade war. hours later unveiling a plan to levy its own tariffs on that same date, totaling the same amount on 545 u.s. products like agricultural products and automobiles. china said additional tariffs on chemicals ipment and could come separately. while the u.s. decided not to charge tvs and pharmaceutical prodts from china in order to minimize the impact on american consumers,rondustrys were still dissatisined, sayg ariffs on components of these items will still lead to higher prices for tvs, computers, and phones. the u.s. chamber of commerce hays the tariffs aren't the right appro and will hurt american consumers, manufacturers, and farmers. the biggestit from china's retaliation would be felt by u.s. companies senrsng planes, and ships to china. after that, soybeans, followed byic pla rubber, and other chemicals according to an analysis by peterson institute

for internationalcomics. u.s. business leaders agree china needs to be held accountablun but it's ear if president trump's strategy will be successful. >> it is conventional, and it's unproven, so i think the world is watching to see wheth this i just gamesmanship. >> so far the brinksmanship has yet to hit economic growth, but fears of an escalating and protracted trade war could take a toll if the uncertainty causes businesses to pull back onin stments. for "nightly business report," i'm kayla tausche in washington. companies of u.s. with global operations responded to those tariffs. among them boeing said today it is assessing their possible impact on its supply chain. fedex said the tariffs ones ch goods will raise prices for american businesses and consumers. and generalt electric said concerned that these tariffs will make it harder for u.s.nu cturers to compete in the global economy. rising trade h tensionse kept investors on guard in recent months, and today it was

no different. after falling as much a 280 points, by the close the dow jones industrial aveas do 84 points to 25,09 the s&p 500 slipped three. for the week the major averages were mixed. bob pisanias more on the down day on wall street. >> simmering trade tensions once again took the stock market for a ride, snapping a three week win streak for the s&p 500. stocks first sold off on presidentar donald trump'sfs announcements, but managed to end well off session ows. the news didn't exactly come as a surprise to investors. the bigger question, how much could trade ten eonsalate from here? the markets overall had a defensive tone throughout the day. consumer staples, telecom, and real estate led the gains. remember, these are all heavily exposed to commodities and trade. caterpillar was the biggest drag on thedow, no surprise there. caterpillar is a big at multnal industrial that's become in a sense a proxy for

the tradeh boe g. but the other big issue is a strong dollar. many of the multin ional companies could get hit hard by a stronger dollar and we could start toof see s this commentary creep up in earnings report next month. still, markets ended about break even for the week, much of the seshor lead, consumer discretionary, staple stocks still intact thanks t a strong data on consumer spending and corporate earnings that showed no signs of running out of steam. foror "nightly business r" i'm bob pisani at the new york stock exchange. >> now, one smaller business o is watching this trade fight very closely, because her company too a hit. when cheap chinese products began flooding the markehe here inu.s., but as kate rogers reports tonight, she did hymething about it and she won. >> cat leonard has run auburn manufacturing for almost four decades. the company has two facility in maine and manufactures heat and

fire resistant fabrics, selling to businesses in oil, petroleum, shipbuilding and even the u.s. navy. a few years ago she began losing sizable contracts. leonard watched about 30% of her business in fabric sappear, causing her to lay off ten employees, about 20% of her workforce. she began to explore why. s we delved further into that, we found that the materials weremoming fro china. we were losing contracts. we found these pricesere up to 30% less than our prices. >> thengroducts were b sold to her competitors. >> that was when we said, look, we got to do something. >> leonard hired a law firm that handles trade matte and helped her file an antidumping case with the department of commerce. 18 months and almost $1 million later, thedoc ruled in their favor, placing animport duty between 200% and t300% same product her competitors were buying from china.

>> i felt great for a moment and then just grateful that it was over. and then moved quickly sort of weary about the future, becauset doesn't mean win-win and all of a sudden you get all the -- all your market back and you make more money. it doesn't work that way. >> and while she's hired more workers and gained back some clients, leonard says the business is still feeling the impacts of chinesedumping. >> those folks who left are not the ones that came back. they found other jobs, they've moved , so it really does hurt a company like ours in that we have to find new people and train them to do these jobs. >> in th meantime, leonard has been keenly watching the white house take on china and oth nations as it tries to renegotiate trade deals in favor of the u for "nightly business report," i'm kate rogers. at&t's purchasef time warner has closed. the two companies wasted no time making the announcement two days

after a judge ruled that the deal does not violate antitrust laws. at&t's ceo said the combined company will helphange how the media and entertainment industr works. >> people who over the last year said this world ofme enterta companies are in decline, oh, my, we'reuilding out new forms of distribution. 5g is coming. there are going tbe opportunities to distribute premium video like we never imagin a. we believe the time that premium video was a great place to invest andhe to be and tech companies are just demonstrating that to us, so we want to participate in this. >> the time warner unit will be renamed warner media. warner media wil fall under the umbrella company of at&t. shares of at&t finished about 2% hier. meantime, the european union has cleared the way for comcast touy british broadcaster sky for $31 billion. comcast submitted its offer in

ril, prompting sky to drop its support for a lower bid from fox. the sky acquisition would substantially increase comcastrn inional operations and as a reminder, comcast is the parent company of cnbc, which produces this program. to economic news, an industrial production which unexpectedly fell inst may. inal output, which is a measure of everything produced by the nation's factories, mines, and utilities slipped .1% last month in part to a fire at a major ford supplier but also nds three straight months of gains. consumer sentiment has risen to its highest level in three months, according to a survey, consumers are upbeat about future ince and job prospects. when consumers feel good, in theory they spend more, which helps lif economic growth. >> and when consumers feel really good about their economic prospects, they are more likely to make big purchases such as a house. but if you're planning on house hunting this weekend, get ready

to rush. homes are selling at a record pace as competition in the market heats up, but there may be a chill on the way. diana olick has more. >> this fully renovated six-bedroom bungalow went under contract in less th week in an up and coming d.c. neighborhood that isn't even quitehere yet. the competition is just that fierce. >> we're probably seeing maybe three to four offers on house, bidding wars are going up and prices are going up, as well. >> a it's n just here in d.c. nationwide the average home sold in m went under contract in just 34 days according to red fin. that broke april's record of 36 days. red fin began tracking this in 2010. homes are selling so quickly because there are so few for sale. more new listings d the market in may, but the total supplyle of homes for as still over 5% lower than last may. the shortage of listings

continues to drive prices higher and insight bidding wars. >>supply/demand imbalance, excess demand and not enough supply. when we look at rates and affordability, what's driving the market today, t entry level has begun to come back in a real way. >> butatigher mortgage are coming back, as well. by may the popular 30-year fixed t the highest level in seven years. despite all the competition, nearly a quarter homes sold in may had seen price reductions. that's the highest level sincebe last sept it could be a sign higher interest rates and higher home prices are finally hitting affordability. are y be selle overreaching at times for the price and there's a slit rrection there, but good homes priced well are still flying off the market. >> precisely why this one didn't last the week. eport,"ghtly business i'm diana olick in washington. time to take a look now at today's upgrades and downgrades, beginning with southwest .

airlin they were downgraded over the short term at least. the analysts there cites pressure from rising fuel costs in the comingrs quar but the firm has a favorable outlook longer term. shares re a fraction today. amd's price target was raised. the analyst predicts the chip maker will rort better than expected profits in 2020. he firm maintains i outperform rating. shares rose slightly to $16.34. >> davos price target cut to $39 at jpmorgan citing persistent margin headwinds after a report of a strong quarter but weaker than expected cash flow. the stock fell 6.5% to $27.73. and coverage of united technologies was resumedn with overweight rating at morgan the analyst cites the potential for corporate restructuring and if positive on the rockwell collins acquisition, the price

target there is $160. the stock fell slightly to $126.91. still ahead, a stock our market monitor says is in the eet spot. his list of recommendations coming up. ♪ ♪ late today, theranos founder elizabeth holmes was charged with wire fraud and the company announced she was also stepping down as ceo. all of this three months after ies was sued by the secur and exchange commission for what it called massive fraud. i today'ictment accuses holmes of engaging in a multimillion dollar sfreme to d investors. at its peak, they had a value of $9 billion and claimed to have a revolutionary system that would chan blood testing industry. that claim, though, has since

been widely called into question. a court has approvedells fargo's $142 million class action the agreement compensates customers who were part of the bank's fe account scandal the money will go to anyone that claims an account was opened without theironnt. wells fargo calls it a significant step fward for the bank. and citigroup agreed toay $100 million for charging a benchmark interest rate. the suit filed by 42 state attorneys general alleged citi manipulated the rate as a way to increase its profit at the expense of investors. s to price everyt from credit cards to mortgages. ay, take yourself back one year ago. it was then that amazon said it would buy whole foods. the announcement sent a chillh throhe sector, pressuring grocery stocks with many saying the industry would be turned upsidedown. courtney reagan looks at where things stand one year later.

>> one year ago two new players entered the highly competitive t u.s. supermar industry, amazon with a purchase of whol a foods lydel. many expected change quickly, but that's not happened. something whole foods shoppers noticed. >> there are a few items cheaper. rally, i don't notice anything that's worse. >> initially there seem to be bumps in the supply chain, things that used to be regulars on the shelves weren't there anymore. >> see o like a lot things are missing from the store. >> it's takenan longer than m expected for amazon to begin integrating what it's known for, decent prices and fast delivery. whole foods did cut prices on core items like milk, eggs, and bananas but that was about it. it was lastonth prime members in some stores got a 10% discount on hundreds of asitems. f this week, less than half

of stores offer this benefit. when it com toonline grocery delivery, whole foods still offers instantn cart as option for an additional fee, but delivery for prime membersons available in 14 cities. even though change has been slow,t hasn't stopp shoppers from coming into stores. >> in our store ccks we're seeing not only higher traffic, ut more importantly hearing consumers say i would shop at whole foods and these other stores for other parts of my grocery store >> le delicioidel opened its fi todaya year ago their original goal was to open up to 100 stores in the first year. day there are just 53. the grocer says it's changing uits origina. strategy and looking at different sizes and locations for its stores. a recent survey shows nearly half of consumers who tried them are shopping there regularly and ending more thhey were a year ago. put l and whole foods

walmart and kroger on the defensive. the top two grocers in the country maintained their position by investing in online ordering and delivery and it appears to have paid off. >> they are movingt a rapid speed to cut prices, make stores more attractive, cutting prices toe make sur the consumer doesn't have reason to of these other places like a whole foods or leidel. >> but the food fight isn't over t. for "nightly business report," i'm courtney reagan in new york city. canada goose reports a surprise profit and that's where we begin tonight's market focus. they more than this quarter, helping results blow past expectations. the company alsoays it sees revenue growing at least 20% over the next three years. shares soared as you might imagine by 33% to $61.02. apple is reportedly planning to used screens as opposed to oled screens in the upcoming iphone models becausehey are

cheaperer for the consumer. the news weighed on shares of universal display and lg display, two companies that spli suly the oled screens. lg display shares down more than 7% in today trade. general motors is reportedly considering publicly listing shares of its self-driving car unit or spinning off the division entirely. bloomberg says the car maker is in talks with banks about that potential option for tha shares of general motors rose fractionally to $43.91. bristol meyers cancer drug has been approved by chinese. legislato the medication is already approved in more than 60 other countries. bristol meyers shas climbed 2% to $54.80. reuters say qualcomm's $44 billion merger with nxp co seuctors has not been approved by chinese regulators

just yet. that r aort cameer bloomberg and a chinese publication said the deal was given the green light by china's ministry of commerce. shares were up a fraction. shares ofls qualcomm rose slightly to $59.86. this week's market monitor is betting his three picks will continue to offer invesgrrs owth, income, and reasonable valuations. it's his first time with us as market. monit mike bailey, director of research. thanks for joining us tonigh >> thanks for having me. >> you want growth, income, and value. sounds llle you want it with these three. >> that's right. we're greedy. we want your cakend eat it, too. we think some of these oprtunities are out there. >> let's start first with your first pick, which would be the symbol rop, roper technology. and you say they have andge by going in and kind of remedying a problem that a existing company might have. >> that's right.

this is -- roper is one of the more interesting industrial companies that nobody has ever heard of. they don't have a big flashy turbo engine to put on tv. they are a collection of a buncl of really s products and companies that previously before roper came along had a nice asset, but were run poorly. roper really scours the earth, looks for good products and increasingly technology and software buys this business, brings them in house and streamlines things and brings in a new management team. they've got a great track record termsf boosting margins, ripping costs out of the system and growing nicely. actually kind of finished up one big wave of projects and on to their next wave. they are planning on putting away $7 billion into some new acquisitions the next four years. they actually just made their first , derst of the $7 billion, and wall street is already starting toir take t profit estimates up. we have a nice runway over the

next few years a company everybody's heard of but in a very competitive area, charles schwab in the brokerage industry. >> that's right. schwab, asou said, definitely becoming more of a household name. they are really doing very nicely, so in aery short term, certainly, tax cuts are helping them among other companies. other thing that's helping schwab is rising interest rates. most seople think ofchwab as a discount broker. you go and do tradesonline for $5. they are a bank, that's where they are generating a ton of profits and their bank was essentially making nothing lasa nd as rates go up they are makingni ver interest income on massive amounts of cash in their system. we're seeing p rfitslly kind of spike up on the 2018. questi, you know, might be is it a sugar high, does that fall off next year? they have nice growth over the next couple of year to continue. we like the story there and they

are taking their dividend up. >> another one. micro chip you say they have two ways to win. one, gross earnings by acquiring smaller semiconductor companies or get acquired. >> thas right. so you can maybe think in your imagination kind of the big fish eati a little fish kind of thing. micro chip is the fish in the middle, so, you know, they've been doing a pretty good job the last few years looking around at smaller competitors, really buying them up. similar to what roper has done, really stripping costs out of thsystem, kind of making the business grow more quickly and they've done a good job with that. bought another company a couple months ago. w howeve think micro chip is in a bit of a sweet spot, so ey are big enough that a much bigger semiconductor company can swoop in and buy them and micro chip is big enough to move the needle for one of the larger companies out there. so we think it's one of the rare semiconductor companies in the middle spot where they can make money on both sides. >> very good.

mike, good to see you again. thanks for joining us tonight. >> thanks for having me. >> mike a bailey,nd you can read more about his picks on our website at nbr.com. g>> coming up, companies that are takin a swing at golf's growth. ♪ ♪ merrill lynchon isdering an about-face when it comes to retirement accounts with the demise of the so-called fiduciary rule. the rule required brokers to act as duciaries, placing client interests ahead of their owns. commissions were seen as creating the potential for brokers to offer conflicted

advice, though. google's latest report on diversity shows little has changed at the company. the number of women, black, and latin employees re jus 0.1% in the past year.le goid report changes at the leadership level. global female leaders reached more than 25%, up from about in 2014. the company says it plans to focus on diversity effor and optimistic it will make progress. the u.s. openme golf tour is under way at shinnecock hills golf club this weekd in south hampton, new york. the game has made big strides in recent years, but to attract new and younger players, new fashion trends areme eing on the greens. dominic chu, lucky guy that he is, is watching the action for us tonight. >> golf looks a lot different today than it did just 60, 40, or even ten years ago. as the game has evolved beyond just a secluded country club and exclusive zip codes across the world, so have the trends in

golf clothing. and mucs of that on display at this year's u.s. open golf championship at shinnecock hills. knee high socks and loose-fitting clothes are out. performance fabric i trending, bright colors, that's trending. fit inste of a big blousy oversized shirt. people are now weaitng more pieces. and i think that one big thing we're seeing is a lot of at leisure, so quarter zip, pullovers. lookingolf industry is to broaden appeal and a variety of companies are takingf advantage ohat opportunity. from upstarts lik 4a golf, where a team of industry veterans areoong to find the intersection between the fairway and melbourne golf wants to bring est coast street wear to the links, and puma is gearing some of its strategy towards bringing a youthful aploeproach to retro designs. much i of the growt golf is coming from younger players,

with women and girls making up a gger part of that story, and golf brands are watching those trends very closely. for "nightly business report," i'm dominic chu in southampton, new york. and before wego here's another look at the day on wall street. the dow was down 84 points to 25,090. nasdaq fell 14 and s&p slipped three. for the week, major averages were pretty much mixed. and that does it for "nightly business report" tonight, i'mer suea. thanks for watching. happy father's day. >> thank you, and to your l. husband, as w i'm bill griffeth, happy father's day to all the fathers. we'll see you monday. ♪

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